Mine 2011: The game has changed

Income statement
2010
$ billion
2009
$ billion
Change
%
Revenue 435 330 32
Operating expenses (246) (220) 12
Adjusted EBITDA* 189 110 72
Impairment charges (1) (12) (92)
Depreciation & amortisation (33) (27) 22
PBIT 155 71 118
Net interest expense (7) (5) 40
Income tax expense (38) (23) 65
Net profit 110 43 156
* EBITDA adjusted to exclude impairment charges.
Key ratios
2010
%
2009
%
Adjusted EBITDA margin 43 33
Net profit margin 25 13
Return on capital employed 18 9
Return on equity 22 11
Profits rising
The Top 40 had an outstanding year, with net profit increasing 156% from
2009 to break the $100 billion barrier. High commodity prices and increased
production explain most of this strong performance as operating margins
flowed through to the bottom line. The key ratios demonstrate a well rounded
performance by the Top 40, with return on capital employed and return on
equity doubling in percentage terms from 2009. However as noted in Nine Year
Trends, the returns remain below the highs of 2006 and 2007.
Revenue
Revenue increased 32% from 2009, exceeding the $400 billion mark to reach
its highest level since we started our analysis. The jump was attributable to
both record high commodity prices coupled with an overall 5% rise in
production.
Revenue ($ billion) Adjusted EBITDA margin (%)
2010 2009 2010 2009
Rio Tinto 57 42 44 32
BHP Billiton 53 51 45 39
Vale 46 24 59 48
Mine–The game has changed 21